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1Q 2019 Leveraged Finance Market Review & Outlook

> High yield rebounded strongly in 1Q19, underscoring commentary that the Federal Reserve’s (Fed) last rate hike was an ill-timed misread of myriad underlying data, which in turn led spooked investors in passively managed strategies to overreact. With increased liquidity and wider spreads, the U.S. high-yield bond market, as measured by the BofA Merrill Lynch High Yield Cash Pay Index, rose 7.4% during 1Q19.

> Defying its critics, the U.S. leveraged loan market, as measured by the Credit Suisse Leveraged Loan Index, showed returns of 3.78%, marking the strongest first quarter in a decade, according to Credit Suisse.

> While high yield flows during the quarter were positive, the pace of retail outflows in the loan sector slowed.

z - Cover Image: 1Q19 Leveraged Finance Market Review

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